Turkey Continues to Protect Employees from Effects of COVID-19: Part II

Ali Bulut
November 19, 2020

Incentive law numbered 7252 was published in the Official Gazette for private sector employers on 28 July 2020. Thanks to this law, private sector employers who applied for short work allowance (SWA) and cash wage support before July 2020 and whose short-time working ended will be able to benefit from financial support.

How to claim the incentive

It’s essential that private sector companies seeking to benefit from the new incentive law applied for SWA and cash wage support before 1 July 2020, and that their short-time working has ended. The employer shouldn’t benefit from other incentives and insurance premiums for the same insured employee in the same month while receiving this benefit. Employers who fulfill the requirement can benefit from this incentive at the employer and employee share percentage minimum wage level.

Private-sector employers can benefit from the incentive for a period of up to three months from the date of the expiry date of their short-time working period.

Employers need to be sure they meet the SWA and cash wage support criteria and don’t make any mistakes in their applications. If the Ministry of Family, Labour, and Social Security identify unjust incentives have been received or errors in the application, the employer will be penalised and the incentives will be withdrawn. Any liability for the delay and late fee for the benefited SWA and cash wage support are allocated together.

Through the new incentive law insurance discounts are provided through both the employer and employees. The employee cannot claim the insurance discount used for themselves, and the employer cannot reflect this discount to their employees.

Since the circular letter about the incentive was issued by the SSI in August, this method of claiming has been used. However, the principles and procedures of implementing the new incentive law have yet to be determined. Even though the deadline for benefiting from the incentive law is December 2020, this period can still be extended by the Presidential decree until June 2021 with quarterly periods.

Take Action

To understand more about the current SII incentive laws, download our SSI Incentive white paper and follow us on LinkedIn and Twitter to keep up-to-date with regulatory news and other updates.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Ali Bulut

Ali is a Sales Director at Sovos Turkey. Based in Istanbul and originally from Turkey, Ali’s background is in software development and project management mostly related to salesforce applications. Ali graduated from the physics department in science faculty at Istanbul University. Ali has been working on tax regulations since 2013.
Share This Post
Share on facebook
Share on twitter
Share on linkedin
Share on email

North America ShipCompliant
May 14, 2021
Alabama Is Latest State to Permit Direct-to-Consumer Shipping of Wine

Alabama Governor Kay Ivey signed HB 437 into law on May 13, 2021, making Alabama the latest state to legalize direct-to-consumer (DtC) shipping of wine. With this step, only Delaware, Mississippi and Utah continue to prohibit this popular and valuable means of selling wine. Alabama’s new DtC law will not become effective until August 1, […]

Tax Compliance Tax Information Reporting
May 14, 2021
Anatomy of a Due Diligence Letter

What is unclaimed property due diligence? An unclaimed property due diligence letter is an organization’s last chance at contacting an apparent owner and preventing their property from escheatment. Each state or reporting jurisdiction has its own unique set of requirements and standards. Due diligence letters are typically required to be sent 30 to 120 days […]

EMEA VAT & Fiscal Reporting
May 13, 2021
EU Council Approves DAC7 Rules on Digital Platform Tax Reporting

On 22 March 2021 the EU Council approved DAC7, which establishes EU-wide rules meant to improve administrative cooperation in taxation. In addition, the Directive addresses additional challenges posed by a growing digital platform economy. What is DAC7? In 2011, the EU adopted Directive 2011/16/EU on administrative cooperation in the field of taxation in the EU […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
May 13, 2021
Russia Introduces Mandatory E-Invoicing From 1 July 2021

Russia introduces a new e-invoicing system for traceability of certain goods on 1 July 2021. Federal Law No. 371-FZ will amend the Russian Tax Code to introduce the new procedure for the traceability system, which will bring the introduction of mandatory e-invoicing for taxpayers dealing with traceable goods. Since its introduction, B2B e-invoicing in Russia […]

North America ShipCompliant
May 12, 2021
Tennessee Set to Impose Regulations on Fulfillment Houses in DtC Wine Shipments

On May 6, 2021, Tennessee Governor Bill Lee signed HB 742 into law, establishing a slew of new provisions affecting the direct-to-consumer (DtC) shipping of wine in the state. These provisions, however, will not become effective until January 1, 2022. While the bill does impose several new restrictions and requirements on businesses involved in DtC […]